Sri Lanka stocks close down 0.6-pct

Aug 20, 2015 (LBO) - Sri Lankan stocks closed down Thursday with volatility returning to the market as it lost steam amid on-going discussions among the two major political parties to form a national government, brokers said. The Colombo benchmark All Share Price Index closed down 48.96 points at 7,449.82 down 0.65 percent. The S&P SL20 closed 26.72 points lower at 4,137.59 down 0.64 percent. Turnover was 1.2 billion rupees, down from 2.3 billion rupees, on Wednesday with 36 stocks closing positive against 143 negative. "Volatility returned to Colombo bourse as the market lost steam amid on-going discussions among the two major political parties to form a national government," Lanka Securities said. "Later the Sri Lanka Freedom Party today decided to support ruling United National Party to build a stable government for a 2 year period." The main index showed losses in Dialog Axiata closing at 11.60 rupees, down 0.30 rupees and Ceylon Tobacco Company closing at 954.30 rupees, down 7.30 rupees. Distilleries emerged as the top contributor to the market turnover with 319 million supported by two crossings where 300,000 shares changed hands at 300.00 rupees. In banking stocks Commercial Bank closed at 173.70 rupees, down 0.90 rupees and DFCC Bank closed at 196.40 rupees, down 1.90 rupees. Foreign investors turned to be net buyers with a net inflow of 131 million rupees after two consecutive sessions of foreign outflows. “Foreign participation was 28 percent.” Net foreign inflows were seen in Distilleries Company 129 million, Sampath Bank 24 million, , and Lanka Hospitals 13 million while net foreign outflows were mainly seen in Hatton National Bank 34 million and Laugfs Gas non-voting 28 million.